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This file photo, shows the Procter & Gamble Co. headquarters building in Cincinnati. (Al Behrman/THE ASSOCIATED PRESS)
This file photo, shows the Procter & Gamble Co. headquarters building in Cincinnati. (Al Behrman/THE ASSOCIATED PRESS)

P&G profit up 37% on cost cuts, higher home care sales Add to ...

Procter & Gamble Co, the world’s largest household products maker, reported a 37 per cent rise in quarterly profit as its cost cutting efforts paid off and organic sales rose in its home care business.

Shares of the maker of Pampers diapers and Tide detergent rose more than 2 per cent before the bell.

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P&G has sought to cut expenses by streamlining management, lowering overhead and marketing costs, and cutting jobs under a five-year, $10-billion (U.S.) restructuring plan announced in February 2012.

The company’s operating expenses fell 7 per cent $6.28-billion in the fourth quarter ended June 30.

Organic sales, which excludes the impact of divestitures and acquisitions, rose 1 per cent in P&G’s fabric care and home care division.

The business, which is the company’s largest revenue contributor, sells products such as Febreze air freshener and Duracell batteries.

Total organic sales rose 2 per cent, but currency headwinds wiped out the gains. Net sales fell 1 per cent to $20.16-billion.

Net profit attributable to the company rose to $2.58-billion, or 89 cents per share, from $1.88-billion, or 64 cents per share, a year earlier.

P&G’s core earnings, which excludes one-time items, was 95 cents per share.

Analysts on average expected the company to earn 91 cents per share on revenue of $20.48-billion, according to Thomson Reuters I/B/E/S.

P&G’s shares were up 2.2 per cent at $78.99 in pre-market trading on Friday.

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